HSBC Overdraft

EFCDonohue

Hello, I'm not sure if this is the right place to put this but I'm new...anyway, my HSBC overdraft fell into collection this summer since I went over the agreed limit. I said to them that as soon as my student loan went in there it would pay for the charges and bring me back to within my limit. It went in today however they have said thankyou very much for paying us off, you no longer have access to this overdraft, giving me a 'nil' credit score as well so they said meaning I can't borrow for 12 months.Any ideas? as I need the money to pay my landlord! thanks

Fonz_2

What do you mean by they gave you a nil credit score?

EFCDonohue

Their words not mine, they said something about it meaning that I'm not allowed to borrow from them for a certain period of time?

richard9991

EFCDonohue wrote: »

Their words not mine, they said something about it meaning that I'm not allowed to borrow from them for a certain period of time?

they have given you a nil internal score which flags up if you ask for credit in the future.

vaporate

Does anyone know how banks internal scoring actually works?

never-in-doubt

Yes, its a behaviour score and HSBC (as many other banks) ensure you meet this prior to agreeing any lending, so for instance to get an overdraft with HSBC you need 50-60 points. As you'll have 0 they would not entertain an application as before any credit search is done on you, you must first pass the banks internal criteria which consists of account history, credit score and liability. As you'll fail at the first point of score, your application will be binned.

Basically, if your credit file looks ok then move banks - but in the meantime not much you can do with HSBC if they have zero'd your internal score..... Strange as it is, it will go back to 20 or so by clearing the arrears so to be fair, in 6mth you'll have an ok score to reapply. If its a student account, you may be argue the fact that an overdraft is required and see if they can back down (best to go in branch but they will not be able to overturn decision, they will take notes and send to account review team in london)...

Good luck

vaporate

never-in-doubt wrote: »

Yes, its a behaviour score and HSBC (as many other banks) ensure you meet this prior to agreeing any lending, so for instance to get an overdraft with HSBC you need 50-60 points. As you'll have 0 they would not entertain an application as before any credit search is done on you, you must first pass the banks internal criteria which consists of account history, credit score and liability. As you'll fail at the first point of score, your application will be binned.

Basically, if your credit file looks ok then move banks - but in the meantime not much you can do with HSBC if they have zero'd your internal score..... Strange as it is, it will go back to 20 or so by clearing the arrears so to be fair, in 6mth you'll have an ok score to reapply. If its a student account, you may be argue the fact that an overdraft is required and see if they can back down (best to go in branch but they will not be able to overturn decision, they will take notes and send to account review team in london)...

Good luck

Many thanks never in doubt. :money: